Celltrion Expands Pharmacy Channels in Europe, Accelerating Growth of High-Margin Products

[Financial News] Celltrion is diversifying its growth strategy by expanding its distribution network and product portfolio in Europe. The strategy is to broaden sales beyond its traditional focus on hospitals and tenders to include pharmacy channels, and strengthen its revenue base by expanding prescriptions for high-margin follow-on products. After posting record results in the third quarter, the company plans to maintain its growth momentum in the fourth quarter as well.
According to industry sources on the 21st, Celltrion is expanding its distribution network and product range in Europe through the acquisitions of French healthcare company Gifrer and Swiss pharmaceutical distributor iQone. In particular, it plans to use Gifrer’s network, which includes more than 9,000 pharmacies and a supply network serving around 800 hospitals across France, to step up pharmacy sales of biosimilars, starting with the bone disease treatment Stoboclo-Osenvelt (active ingredient: denosumab). It will also use the approximately 140 types of over-the-counter medicines, pharmacy medicines and health functional foods secured through the acquisitions as new revenue sources.
Its local direct-sales network and country-specific sales strategies are also delivering results. Omlyclo (active ingredient: omalizumab), a treatment for chronic spontaneous urticaria and allergic asthma, had approximately 90% market share in Spain as of July this year. Sales in Italy also exceeded business targets, while in Germany the company is pursuing market-specific supply strategies, including launching a 300 mg product to meet local demand.
Avtozma (active ingredient: tocilizumab), a treatment for autoimmune diseases, won a tender run by a major Dutch pharmaceutical purchasing cooperative, securing supply volumes equivalent to approximately 58% of the local tocilizumab market.
Celltrion is also expanding sales of its existing product range in Europe. Remsima SC (active ingredient: infliximab), a treatment for autoimmune diseases, had approximately 32% market share in Europe’s five major countries in the first quarter of this year. The cancer drug Vegzelma (active ingredient: bevacizumab) has maintained its market-leading position for one year and nine consecutive months, with approximately 28% market share, while Yuflyma (active ingredient: adalimumab), a treatment for autoimmune diseases, had approximately 22% market share.
Celltrion plans to sustain its growth by expanding sales of these products and diversifying its distribution network. In the third quarter, it had already posted record quarterly results, with preliminary consolidated revenue of 1.5 trillion won and operating profit of 510 billion won.
A Celltrion representative said, “We are strengthening the competitiveness of our existing biopharmaceutical sales in Europe while expanding our distribution channels and product portfolio,” adding, “By tailoring our sales strategies to the characteristics of each country’s market and expanding sales of our high-margin follow-on products, we will continue to grow revenue and improve profitability in the fourth quarter.”

[email protected] Jung Sang-hee Reporter